> If I set up piratedwindows7downloads.com in China (or
  > Sealand), it's hard to see how I can be held
  > accountable for my infringement via the DMCA.

The only 'real' way to deal with this is some SOPA-style blacklist... or to copy Belarus[1], and require all sites that US citizens access to be hosted within the US... or to deploy trade sanctions against China (though I somehow doubt that the effects of the piracy in question would out-weigh the effects of the trade sanctions).

[1] http://news.ycombinator.com/item?id=3415897